On-chain settlement for merchant payments - the USD-peg problem

asked by u/rafaelribeiro · 7d · 1 answers

I'm looking into how various stablecoins are positioning themselves for direct merchant payments settlement, particularly for international transactions. The big draw is obviously faster, cheaper settlement than traditional rails. But what's the actual adoption looking like for stablecoins other than $USDC or $USDT? I'm wondering if the average merchant really sees the benefit if they still have to off-ramp to fiat USD to manage their books, which then reintroduces the very friction stablecoins aim to eliminate. It seems like the true value only unlocks when a significant portion of their supply chain or customer base also accepts on-chain stablecoins, essentially bypassing the banking system for a larger chunk of their operations. Any insights on the actual pain points merchants are facing with current stablecoin integrations beyond just the technical setup?

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  • u/white_tyler· 1 pts· 6d

    That's a really good point about the USD-peg problem for merchants. Even with faster settlement, if they're still beholden to USD volatility and conversion fees, a lot of the benefit is lost, especially for those operating outside major dollarized economies. I wonder if local currency-pegged stablecoins will gain traction, or if the liquidity for them would just be too thin to be useful.

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